SBI Mutual Funds Management Pvt. Ltd. has been serving millions of investors through their years of experience. With a wide system of over 222 service points across India. SBI has been trying to create trust among investors. SIP or Systematic Investment Plan is the best way to invest in Mutual Funds. The SBI SIP plan lets you save a certain amount regularly like weekly/monthly/quarterly.
SBI SIP plan encourages regular savings. With an SBI SIP Plan, you can easily stay invested for a longer duration to create wealth. Since the amount is invested at regular intervals, it also reduces the impact of market unpredictability.
With SIP investment, investors can also plan their various goals like retirement, marriage, purchase of a house/vehicle or even higher education, etc. So, start a SIP today in Equity Mutual Funds by investing in these best SBI SIP plan funds.
The Need of SIP Plan
The various criteria required to arrive at the targeted investment amount may differ from one individual to another depending on their unique needs at present as well as the future.
Now, suppose you arrive at a figure of Rs. 2 crores that you need to save by the time you retire at the age of 60 years. It seems like a large sum, but if you consider that you might have around 30 years to reach this target, you will have to save a total of INR 56,000 per month. However, this does not consider any interest or capital gains income that you might receive on your savings. Now consider that you generate 15% annual returns on your monthly savings. In this situation, your monthly savings requirement will come down significantly to around INR 3,000 – which is a lot easier to achieve.
If you have a definite goal for example creating a corus of Rs. 2 Cr in 30 years check here what should be you SIP amount by usingt this reverse SIP calculator
This instrument is quite effective in the planning of your finances in the short run. This makes financial planning for important events like marriages, higher education, down payment, etc. achievable through SIPs.
How SBI SIP Plan works
The SIP is quite similar to a bank’s recurring deposit system. So, once you start an SBI SIP plan, the investment capital mentioned by you is subtracted from your registered bank account on a specified date. This is known as the SIP Biller. After this, the specified amount is invested into an SBI mutual fund scheme that you selected. Kindly note here that though your investment amount will remain unchanged, you do have to remember that the NAV of the fund that you have chosen is a variable.
Let’s take an example. Suppose you are investing Rs. 5000 per month through a SIP. Let’s assume that the SIP investment NAV of your chosen SBI MF scheme is Rs. 50 and therefore you buy 100 units of the scheme. Assuming that at the moment of your next SIP payment, the NAV has risen to Rs. 60, you can buy 83.33 units of the scheme.
Whereas, when the NAV declines to Rs. 40, you can buy 125 units in the same scheme.
Thus, the examples state that the units of your SIP will be changed according to that particular fund’s NAV. If the NAV is less you will get more units. If the NAV is more you will be getting fewer units. This is known as Rupee Averaging System.
Benefits of Investing in an SBI Mutual Fund Scheme through SIP
When you invest in an SBI mutual fund scheme using SIP, you are investing in a high-quality mutual fund scheme.
- Tenure Flexibility for Investment- For most mutual fund schemes managed by SBI Mutual Funds Asset Management Company, the number of SIP EMI can be as less as 6 months and there is nothing called maximum tenure when availing an SBI SIP. Besides, you can also change the tenure at a later date after the SIP has been started without a hitch.
- Flexible Investment Amount- An SBI SIP can be started by an individual investor with an amount as small as INR500 for each installment. Such high flexibility is one of the main reasons for investments to go up in the SIP segment.
- Disciplined Investments- One of the key factors that determine future wealth is financial discipline. While it seems easy to guarantee that you save a specified amount at given monthly intervals, few manage to do this constantly.
- Long term Benefit of Compounding- Though not a fixed-rate instrument, mutual fund investments are subject to the general rule – the earlier you invest, the more your wealth grows over time. This is why the SIP calculator is an important tool for calculating the future value of your investments. This is based on a compounding system to provide you with approximate returns. Small amounts invested in mutual fund schemes through an SBI SIP bring high profits through compounding.
SBI Mutual Fund Schemes for SIP Investments
SBI Small Cap Fund
|The Scheme seeks to generate income and long-term capital by investing in a diversified portfolio of equity-related securities of companies identified as industry leaders.||1st Year: 0.9%|
3rd Year: 14.86%
5th Year: 20.96%
The Launch date of this fund is 9 September 2009. This fund has consistently beaten other funds in the same category along with its benchmark and provided -1.43% returns in the last 1 year. The Exit load on this fund is 1% if redeemed within 1 year. The AUM of this Fund is ₹2258.07 Cr.
SBI Large Cap and Mid Cap Funds
|To provide the investor with the opportunity of long term capital appreciation by investing in a diversified portfolio comprising large-cap and mid-cap companies.||1st Year: 6.48%|
3rd Year: 10.14%
5th Year: 12.36%
The Launch date of SBI Large Cap and Mid Cap Funds is 28 February 1993. This fund has consistently beaten other funds in the same category along with its benchmark and Risk is lower compared to the benchmark. The AUM of this Fund is ₹2614 Cr.
SBI Magnum Multi-Cap Fund
|Designed for investors who are looking for a balance between high growth potential and the related investment risk.||1st Year: 5.55%|
3rd Year: 11%
5th Year: 14.26%
The Launch date of the SBI Magnum Multi-Cap Fund is 29 September 2005. This fund has consistently beaten its benchmark in the Multi-Cap segment and provided 12.21% annualized returns in the last 3 years. The Exit load of 0.10% if redeemed within 30 days. The AUM of this Fund is ₹7583 cr.
SBI Magnum Children’s Benefit Plan
|Designed to supplement investors with an opportunity to earn regular income predominantly through investment in debt and money market instruments and capital appreciation through an actively managed equity portfolio.||1st Year: 2.08%|
3rd Year: 10.27%
5th Year: 11.05%
The Launch date of SBI Magnum Children’s Benefit Plan is 4 January 2013. This fund has consistently beaten its benchmark in the Children’s segment and provided 11.26% annualized returns in the last 3 years. In the last 1 year, it gave 3.12% returns. The Exit Load of 3% if redeemed within a year, 2% if redeemed within 2 years and 1% if redeemed within 3 years. The AUM of this Fund is ₹63 cr.
SBI Banking and Financial Services Fund
|The investment objective of the scheme is to generate long-term capital appreciation to unit holders from a portfolio that is invested predominantly in equity and equity-related securities of companies engaged in banking and financial services.||1st Year: 17.33%|
3rd Year: 19.96%
5th Year: N.A.
The Launch date of the SBI Banking and Financial Services Fund is 26 February 2015. This fund has consistently beaten its benchmark in the Sectoral/Thematic segment and provided 21.35% annualized returns in the last 3 years. In the last 1 year, it gave 18.64% returns. The Exit load of 1% if redeemed within 12 months. The AUM of this Fund is ₹892 Cr.
SBI Magnum Income Fund
|The objective of the scheme is to provide the investors an opportunity to earn, as per their requirements, through capital gains or through regular dividends, returns that would be higher than the returns offered by comparable investment avenues through investment in debt & money market securities.||1st Year: 10.4%|
3rd Year: 8.01%
5th Year: 8.71%
The Launch date of SBI Magnum Income Fund is 14 March 2013. This fund has consistently beaten its benchmark in the Medium to Long Duration segment and provided 8.85% annualized returns in the last 3 years. In the last 1 year, it gave 11.2% returns. The Exit load of 1% will be charged for redemption within 1 year The AUM of this Fund is ₹1200 cr.
SBI Arbitrage Opportunities Fund
|SBI Arbitrage Opportunities Fund aims to provide capital appreciation and regular income by identifying profitable arbitrage opportunities between the spot and derivatives market segments as also through the investment of surplus cash in debt and money market instruments.||1st Year: 6.11%|
3rd Year: 6.06%
5th Year: 6.53%
The Launch date of the SBI Arbitrage Opportunities Fund is 3 November 2006. SBI Arbitrage Opportunities Fund invests a maximum 85% of the assets in arbitrage opportunities and a minimum of 15% of the assets will be invested in debt and money market instruments. The AUM of this Fund is ₹2667 Cr.
With the help of SIP plans, one can save money for their future goals. With investing money at a regular interval into SIP the desired goals of the investors can be met. These best SBI SIP Plans will help the investors in saving money for the future.
We, at WealthBucket, believe in over-delivering our clients to serve them. Consider our expert services if you wish to invest in equity mutual funds, debt mutual funds, large-cap mutual funds, small-cap funds or multi-cap funds. There are more services to explore. For this, you can either call us at +91 8750005655 or mail us at [email protected]
These funds have been shortlisted by undertaking certain parameters like AUM, NAV, past performances, peer average returns, etc. All the data is updated and is dated 9 July 2019.